Can mortgages be deferred during the epidemic? What should I do if I can't pay my mortgage during the epidemic?

We all know that the coronavirus is a serious epidemic recently. Many people have been infected and hospitalized, and there are still many potential patients who have not been discovered, so everyone must pay attention to protection. So can mortgage repayments be deferred during the epidemic? Let's take a closer look!

Can I defer my mortgage payments during the pandemic?

During the epidemic, home loans can be postponed and you can apply for deferred repayment, but for specific measures, it is recommended that you consult the relevant bank customer service as different banks have different policies.

Banks on the front line of the fight against the epidemic have special policies. If you do not repay the loan for the time being, you must keep evidence such as proof of employment. Of course, if your repayment ability is not a problem, it is best to repay the loan on time. After all, it will be very troublesome if there is a problem with the bank's credit report.

Although we only consulted some banks, we clearly felt that there were huge differences in the intensity with which each bank implemented the relevant notices of the China Banking and Insurance Regulatory Commission.

Now the whole country is united in fighting the epidemic. As the competent department, the China Banking and Insurance Regulatory Commission cannot formulate a unified code of conduct for major banks due to the differences in financial systems in various cities. It can only issue relevant notices to make appeals. The specific policy formulation and implementation are still subject to the flexible arrangements of local banks based on their actual conditions.

The so-called flexible adjustment of repayment arrangements now mainly refers to postponing the repayment period (mortgage or credit card) for people affected by the epidemic. Late repayment will not be counted as a default and will not be included in the credit report.

Currently, many banks are accepting applications for deferrals, which are basically loan repayments for the current month, and the deferral period is mostly more than ten days to one month (depending on the policies of different banks). However, some banks, such as the Bank of China, can provide a 3-6 month delay in principal repayment for people who have temporarily lost their source of income in key epidemic areas.

As for whether it is possible to not repay the loan in addition to deferring it? So far, we have only heard that the landlord has reduced or waived one month's rent for the tenant, but we have not heard that the bank can reduce or waive one month's mortgage.

However, although the principal will not be reduced or exempted, "Yu Jian Finance" called and learned that many banks (including credit card departments) can make appropriate reductions in loan interest charges based on the actual situation of the customer, such as China Guangfa Bank, Ping An Credit Card, etc.

What to do if you can't pay your mortgage during the epidemic

1. Borrow money to repay a loan

What should I do if I can't pay back my loan? I believe you will also have this idea, that is, borrow money. In addition to borrowing money from relatives and friends, you can also apply for various loans from banks to solve the problem. However, this is also a practice of robbing Peter to pay Paul. It can be used to solve urgent problems in the short term, but it is not allowed in the long term.

2. Extend the loan period

If the buyer cannot repay the loan in a short period of time due to personal reasons, he can check the loan term he has chosen. If it is 10 or 20 years, he can apply to the bank to extend the loan term, because generally the longest loan term can reach 30 years. Of course, different places have different regulations, so you still need to communicate with the bank for details.

3. Transfer or sell the house

If the buyer is unable to afford the house, there is another way to repay the loan. That is to sell the house. Generally speaking, the buyer can transfer the house with the bank's consent. The new buyer will re-sign with the bank, and the new buyer will be responsible for the repayment of the bank loan. This method is more proactive than the bank auction.

How to apply for mortgage extension during the epidemic

Those who apply in advance basically call the bank's service hotline (or through the APP customer service). The customer service staff will register the information and then hand it over to the back-end department or the account manager of the customer's mortgage processing branch for follow-up; housing mortgage customers can also apply directly by calling the branch that handles the business.

For those who cannot apply in advance due to special circumstances, such as patients in intensive care or hospitalization, some banks also accept post-application within a certain time frame, such as the Industrial and Commercial Bank of China. After application, special treatments such as reduction or exemption of loan penalty interest during the epidemic prevention and control period and restoration of credit can be carried out. (Credit reports that have already been submitted can be adjusted)

ICBC:

Due to the special circumstances of the epidemic, you can apply for an extension and it will not affect your credit record.

China Construction Bank:

As long as the payment is made on the last day of the month, it will not affect your credit record.

As for matters such as mortgage extension applications, since the loan business has been transferred to the local loan department, you need to consult the local credit department for specific circumstances.

After consulting the local credit account manager, they said: Medical personnel on the front line of the fight against the epidemic can postpone repayment, and their identities will be confirmed in the customer system afterwards. As for people whose income has been affected by the epidemic, they can also postpone repayment after providing relevant certificates and passing the review.

Postal Savings:

Credit protection will be provided to medical staff, government workers, people in quarantine infected with the new coronavirus pneumonia, and people who have temporarily lost their source of income due to the epidemic who participate in epidemic prevention and control.

Huaxia Bank:

The notice received so far is for customers of personal loans from the Wuhan Branch. If they are staff participating in epidemic prevention and control, military officers and soldiers, government workers, and patients and families affected by epidemic isolation, they can be provided with extensions, credit protection, interest rate discounts, green channels and other services.

The remaining cities have not received any notification regarding business extension yet.

China CITIC Bank:

It should be emphasized that you must apply in advance, preferably 3-5 days before the repayment date. If you do not apply in advance, an overdue record may be generated.

If the due date is only one or two days away, it is recommended that you pay off the current installment first and then apply again before the next installment.

You can also contact the relevant bank for consultation based on your actual situation.

Can mortgage payments be reduced during the pandemic?

Generally not.

However, if the government authorizes the CBRC to allow and encourage banks to waive one to two months of loan repayments for mortgage customers, in order to support homeowners who rent to support their loans and help them pass on the benefits to tenants, then the national government can legitimately implement a livelihood policy that everyone is happy with, which will surely play a role in rallying the people and making the public opinion stronger. As for how each bank operates, it is up to each bank to formulate the detailed rules. For example, as long as the mortgage owner provides a current valid rental contract and a rent reduction agreement reached with the tenant, the bank can waive the owner's corresponding proportion of the mortgage payable for the corresponding period.